Stocks on Dalal Street might look to consolidate after a good start to the week on Monday. We expect the benchmark index or the Sensex to give up 50 to 100 points today. The immediate support for Nifty is at 5180 and a breach would revive the downward trend in the near term.
U.S. stocks ended lower Monday, with the Dow industrials giving up a more than 120-point advance, after another downgrade of Greece's sovereign ratings offset hopes of recovery in Europe. The Dowjones Industrial average ended down by 0.2 percent after nearly gaining one percent during the day.
IT and metal sectors were in the limelight yesterday gaining nearly 2 percent for the day. Infosys was surprise gainer yesterday as the scrip gained more than 4 percent on FII buying in the counter. WIPRO, HCL Tech and Reliance Communications were other notable gainers in the Nifty Fifty stocks.
Meanwhile the Core Inflation numbers came in above analyst estimates came in above at 10.16% above the analyst expectations. The markets kind of ignored the bad news yesteday, but we believe that this would increase the pressure on RBI, which eventually could lead to rate hike by the RBI in late July. This might not bode well for the markets in the short run.
Balaji Telefilms and RNRL were among the top gainers in the midcap stocks space yesterday, with later witnessing huge volumes as was the case with most of the stocks with exposure to ADAG. Overall, a flat day with a downward bias is in the offing.